Dubai: Gold prices open higher; 24K trades at Dh216.25 per gram

Dubai - The path of the virus remains central to Fed's decision-making.

Gold prices inched higher on Tuesday morning due to rise in coronavirus Delta variant cases.

Spot gold rose 0.01 per cent to $1,787.72 per ounce at 9.20am UAE time.

In the UAE, 24K gold prices rose one dirham to Dh216.25 per gram at the opening of the market on Tuesday as compared to Monday morning. Meanwhile, 22K, 21K and 18K were trading at Dh203.25, Dh194.0 and Dh166.25 per gram, respectively.

Stephen Innes, managing partner at SPI Asset Management, told Reuters that there seemed to be a little bit of demand for the dollar, but it was not really turning gold off completely because there was a possibility that the Federal Reserve would not push forward any taper agenda.

"However the upside in gold is going to be relatively limited," he added.

Recent data showing sharp drop in US consumer confidence and a bigger-than-expected drop in New York Fed's Empire State manufacturing business index have allayed some concerns of an early policy tightening by the Fed.

"The path of the virus remains central to Fed's decision-making and the minutes of the July meeting will provide further insights into the debate at the Fed on tapering," ANZ Research said in a note.

waheedabbas@khaleejtimes.com

• Dubai